Alternative Policy Study: The Conservation and Sustainable Use of Forests in Latin America

This study was carried out by the Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renováveis (IBAMA), Brazil, in collaboration with the University of Chile and the University of Costa Rica, as part of the preparation for UNEP's GEO-2000 report.

Summary

Deforestation in Latin America is driven by the expansion of the agricultural sector, demographic pressure, logging and inequitable land distribution. So far, forestry policies in the region have not been effective, mainly because they have failed to take into account the differing needs of different forest users.

Many promising policy options are available, including direct control of government-owned forests, and indirect control using fiscal incentives in the form of taxation, subsidies and forest credits, and other incentives such as the granting of private property rights, market reforms, the introduction of community forestry schemes, and improvements in extension, research and education.

Packages of these policies could reduce deforestation rates, forest fires, numbers of threatened animal and plant species, and regional carbon dioxide emissions; slow down agricultural expansion onto forest land; improve forest ecosystem health, the quality of urban and rural life, and regional and local economies; and provide appropriate technologies to forest dwellers as a tool for sustainable development.

The natural environment provides three main types of services necessary to sustain life:

a source of the raw material vital for all human activities;

a sink for waste and residue generated by human activities; and

a means of maintaining essential life support functions.

Forests fulfil these services through a multitude of functions and products. The products and services derived from forests are diverse and benefit people at the local, national and global level. Indigenous people and traditional communities rely on forest resources for most of their consumable goods, such as food and shelter. At the national level, forest resources such as wood are a source of foreign exchange, and forested lands are regarded as new areas for settlement and for expanding food production. Forests also protect watersheds and ensure perennial supplies of freshwater. In global terms, forests and forest soils serve as a vast storehouse for carbon and support most of the world's biodiversity
(Daily 1997).

In Latin America natural forests cover 47 per cent of the total land area, spreading from the Mexican dry forests to the southern temperate forests of Chile and Argentina, including the Amazon Basin which accounts for a third of the world's tropical forest area. Because the Amazon Basin forests account for 85 per cent of Latin America's total forested area, this paper focuses primarily on these, especially those in Brazil, but it should be noted that the non-Brazilian Amazon forests and other non-Amazon forests deserve equal attention in terms of alternative policy options.

The question of what can be done to promote the conservation and sustainable use of Latin America's forests is addressed in this paper by exploring some alternative policy tools designed to strike a healthy balance between development and forest conservation in Latin America.

The concept of sustainable development used here encompasses three main dimensions: economic, ecological and socio-cultural. These dimensions must be addressed with equal emphasis to ensure sustainability. Goods and services derived from forests support economic development. If forest resources are conserved and managed sustainably, a continuous flow of goods and services can be ensured, creating significant potential for expanding economic benefits and allowing a more equitable distribution of these benefits.

According to a recent study by the International Center for Tropical Agriculture
(CIAT 1998) the expansion of the agricultural frontier, mining and roads are the main causes of deforestation and forest degradation in Latin America, being responsible for 84 per cent of the total area, followed by logging with 12.5 per cent, and infrastructure (hydroelectric dams, road construction and expansion of urban areas) with 3.5 per cent. In many areas unemployment and inequitable land distribution force landless peasants to invade the forest for lack of other economic means. Thus, poverty and demographic pressure are the main causes of forest clearance and the degradation of the natural environment
(WRI, UNEP, UNDP and WB 1998).

Between 1980 and 1990, the yearly loss of tropical forests in Latin America was 5.5 million hectares, with an average deforestation rate of 0.75 per cent
(FAO 1995). From the total deforestation, 25 per cent occurred in tropical rain forests, 43 per cent in subtropical forests (including savanna woodlands and tropical dry forests), 22 per cent in mountain forests, and 9 per cent in forests in arid zones. In the Mesoamerican region, the dry forests have been drastically reduced to only 4 per cent of their original area. In the case of southern temperate rain forests deforestation rates averaged 0.53 per cent per year in the 1980-1990 period
(CIAT 1998).

Throughout the region forest conservation policies have concentrated almost exclusively on tropical rain forests, ignoring highly degraded areas where the value, potential and possible extinction of species urgently needs evaluating.

The largest aggregate of tropical forests, not only in America but on the whole planet, is in the Amazon region; it also has the largest percentage of preserved or untouched areas. Of the approximately 8 million square kilometres of the Amazon forest and its correlated formations, approximately 90 per cent are in a good state of preservation. Nevertheless, they are subject to increasing risk and an accelerated pace of devastation in Brazil, Venezuela, Ecuador and Bolivia; deforestation is also intensifying in Guyana and Surinam (see map below of Forests at Risk in Latin America).

Forests at Risk in Latin America, With Assessment of Level of Threat

Source: CIAT 1998

The region has an imbalance in terms of reforestation. Only 373 000 hectares were planted per year in the 1981-1990 period
(WRI, UNEP, UNDP and WB 1996). In other words, for every hectare planted 25 are deforested. In 1995, the total area of forest plantations was only 8 million hectares (WRI, UNEP, UNDP and WB 1998).

The state of Latin America's forests is not simply a matter of their extent. Increasing attention is focused upon the health, genetic diversity and age profile of forests, collectively known as forest quality. Measures of total forest area do not reveal the degraded nature of much regrowth forest. Logging often degrades forest quality, inducing soil and nutrient loss, reducing the forest's value as habitat, and increasing its vulnerability to fires. Pressures on many of the remaining large, relatively natural ecosystems known as frontier forests
(Bryant, Nielsen, and Tangley 1997) continue to increase. As logging activities shift from largely deforested areas formerly inaccessible regions are opened; the roads which are created lead to the establishment of new settlements.

In the next few decades the convergence of population growth, the rising demand for lumber and fuelwood and the conversion of forests to agriculture will put large areas of Latin America's forests under threat. The result will likely be a considerable loss in forest area and quality, with the remaining forest fragmented into small isolated tracts.

Comprehensive forest policy frameworks at the national level are fundamental to achieving the goal of sustainable resource use in Latin America. Sustainable development can play a key role in reducing pressure on forests and replacing the processes leading to forest degradation and deforestation. National forest programmes demand a broad intersectoral approach at all stages - formulation, implementation, and monitoring - and should be implemented within the context of each country's socio-economic, cultural, political and environmental situation.

Latin American countries can adopt many different policy tools to conserve and develop their forests. For many different reasons, such as the type of forestry practices and/or the type of government, there may be no generally accepted form of policy tool that can be applied throughout the region.

The policy tools considered here involve either direct or indirect government control. Under 'direct control' are the policies affecting government-owned forest areas - for example, production on government land - or that control how private landowners operate - for example input and output regulation. Under 'indirect control' are the policies that use economic tools to induce sustainable forest use - for example, economic incentives like taxes, subsidies and contracts, and institutional incentives like private property rights, market reforms, community-based forestry, education and extension, and research and development.

How can one apply these principles in practice? There are a number of programmes and actions which will promote the conservation and sustainable use of Latin America's forests:

Degraded areas need to be rehabilitated. Examples include the 'capoeiras' (new growth of shrubbery and brushwood on areas cleared through slash and burn methods), grazing land, and mining sites abandoned without reclamation. If they can benefit from economic incentives and technical assistance the 'capoeiras' and other forms of native or semi-native vegetation slowly growing back in these areas can become centres for development and at the same time relieve the pressure on the primitive areas. This represents a renewed valuation of spaces. Despite having had their assets reduced, these areas can be sustainably revitalised.

Agroforestry areas and projects should be developed. This involves using an enriched combination of native species from different forest strata, giving preference to those which have an economic application. This initiative uses biodiversity and the characteristics of the ecosystem, contributing to its preservation. The greatest problem is rendering the method economically feasible as an alternative to crude logging. Brazilian experiences, especially in Acre and the shaded cultures in Rondonia, have proven agroforestry practices to be viable. It is fundamental to define the areas and species most suited to agroforestry projects, and to establish severe taxes for 'forest mining' activities.

Sustained forestry management should be developed. By focusing on replacing specimens as they are removed, existing natural assets do not become impoverished. The following aspects are necessary for effective forestry management: zoning to determine suitable locations and the intensity of the exploitation; maintaining ecological forestry corridors to preserve the ecosystem's energy flows; and respecting socio-diversity and co-existence with other economic alternatives. Precautions need to be taken; for example floodable forests need to be maintained and their untouchability defended since they are a refuge for wildlife species and for fundamental nutrition chains.

Networks of protected areas, buffer zones and ecological corridors need establishing or expanding. Socio-diversity and the traditional use of biodiversity should be encouraged in these areas in parallel with their main function which is to protect ecosystems. The social uses by local populations of existing resources should be recognised. Examples include the different uses made of manioc root, coconuts and other fruit for food, and the fishing and fish preparation techniques of the Amazon Caboclos in Brazil or the Caiçara and the other indigenous people who inhabit the Atlantic forest along the Brazilian seacoast.

In defining protected area networks it is fundamental for countries to seek the representation of all of biotypes, from the 'cerrados' (scrublands) of the ecological tension areas to the flooded corridors of the major rivers, especially the Amazon tributaries. It is also important not to forget flooded areas, water bodies and other wetlands, like Chaco (Argentina and Paraguay) and Pantanal (Brazil, Paraguay and Bolivia).

The creation of the 'Mesoamerican Corridor', coordinated by the Central American Commission on Environment and Development (CCAD) and currently under development, is a relevant example of integration focused on protecting conservation units on an international scale. In Brazil, the creation of the Atlantic Forest Biosphere Reserve, recognised by the UNESCO's Man and Biosphere Programme, is also an attempt to view in an integrated manner the remnants of an ecosystem already largely destroyed. Protecting these remnants of forest areas is very difficult because of the considerable power of those economic agents interested in indiscriminate exploitation such as logging groups and, in areas with a higher occupation density like the state of São Paulo, real estate developers.

Mechanisms must be found for returning more of the revenue created from the biological wealth of the forest regions to the countries from where the resources are extracted, especially to the local or indigenous populations. Amazon mahogany, for instance, is removed from Indian reserves at a price of US$5/m3. Its value when taken from private properties is US$20/m3. Yet when it arrives at European markets its price is over US$800/m3.

Countries should form a framework of monitoring actions and customs regulations to increase the collection of local taxes. Also to be encouraged are private sector initiatives which involve the co-operative production of articles derived from the forest which, upon processing, acquire an added value on the market. An example of this is the manufacture in the Brazilian state of Amazonas of so-called 'vegetable leather' which is made from latex and is used in the fabrication of handbags, household utensils and clothes.

Policies should address long-term land tenure rights, encourage local community investments in sustainable forest management, and improve local community access to markets.

Sustainable cities should be constructed in the tropical forest regions as bases for development. The Amazon region itself, when the current distribution of its population is analysed, is already an 'urbanised forest'; it is witnessing a rapid growth of so-called 'mushroom towns' which spring up along the pioneer settlement fronts, driven by mining, logging and agribusiness. It is necessary to pay close attention to the basic sanitation of these towns, to the supply of potable water, and to the measures for treating and disposing of household effluents and solid waste. It is also necessary to prevent soil erosion and the occupation of areas subject to flooding which will lead to health problems. In view of the enormous distances between urban centres in the Amazon region, it is also fundamental to stimulate the creation of urban systems with complementary services.

Mineral resources should be exploited in a disciplined fashion. National policies should control the pollution caused by large mining operations. Also needing control are the small-scale illegal miners and prospectors who are spread out all over the region, degrading the environment. Gold extractors, for instance, use mercury and dredge river beds. In addition to their direct environmental impact, gold extraction and the mining of cassiterite and precious stones provoke the invasion of natural or Indian reserves. In the latter case it makes it very difficult to preserve local socio-cultural values. The miner/prospector population also disseminates diseases like malaria and leishmaniasis. The mineral wealth of the Amazon region also calls for integration among the countries of the basin to provide a joint effective pollution control system, since almost all the rivers cross more than one country.

Ecotourism can be developed as a source of funds by taking advantage of the appeal of the region's forests and its natural beauty. Although there is a high risk of negative impact if ecotourism is not developed properly, it is nevertheless possible to establish non-predatory, high-quality, and economically-feasible projects. In general, there are few hotels in the region qualified for ecotourism. The structures for the attraction, reception, support and creation of new alternatives are still fragile in all Latin American countries. One can find the best examples of high-quality ecotourism development in Costa Rica, which has a large number of visitors.

Institutional structures for environmental control and sustainable development need creating or strengthening. At present they are still precarious. In general, environmental entities have limited operative capacity and no effective licensing and monitoring structures with regard to environmental impact. As an instrument for rethinking development styles and actions, and as a strategy for helping communities and political agents link environmental concepts to economic growth, 'Agenda 21' should be implemented on both the national and - especially - the regional level.

Policies should be developed to enhance the appreciation of the value of forests for delivering environmental services. For instance, Costa Rica is currently instituting the notion of payment for the environmental services forests provide. This will most likely lead to consumers accepting charges incorporated into water, electricity and ecotourism bills for forest conservation and reforestation.

Finally, training, information and education are decisive if these alternative policies are to be implemented in the current environment of the predatory exploitation of Latin America's forests. Training involves developing human resources for various activities, from monitoring and control, to ecosystem research, to creating new environmentally-adapted technologies. Universities and research institutes have a fundamental role, and should be strengthened by the mechanisms of interchange and collaboration. These actions can be developed within the scenario of the Amazon Co-operation Treaty and the Central American Alliance.

Obstacles arising from the prevailing regional socio-economic condition of extreme poverty will be overcome by disseminating information and educating local populations. These are tasks for government and society. Take the example of fire. It is used incorrectly and indiscriminately due to a combination of factors. To an extent this is due to lack of awareness about its prejudicial aspects and about alternatives for opening up primitive areas for economic activity. But it is also due to a lack of technological and financial resources to allow the proper occupation of the areas where human activities are expanding.

The construction of an alternative scenario for the development of Latin America's forest areas is complex yet feasible. It requires political decision-making which, although it has occurred at different levels in the countries of the region, needs to be improved according to the principles outlined above. It needs competent and effective international coordination and a deeper look at the enormous and complex wealth that the Latin American countries possess and should not allow to go to waste. It is of vital importance to the region that this scenario become reality.